Fair Work (Transitional Provisions and Consequential Amendments) Act 2009

A modern enterprise award must include terms (coverage terms) setting out, in accordance with this section:

the enterprise or enterprises to which the modern enterprise award relates; and

the employers, employees and organisations that are covered by the modern enterprise award.

A modern enterprise award must be expressed to relate:

to a single enterprise (or a part of a single enterprise) only; or

to one or more enterprises, but only if the employers all carry on similar business activities under the same franchise and are:

franchisees of the same franchisor; or

related bodies corporate of the same franchisor; or

any combination of the above.

A modern enterprise award must be expressed to cover:

a specified employer that carries on, or specified employers that carry on, the enterprise or enterprises referred to in subsection (2); and

specified employees of employers covered by the modern enterprise award.

A modern enterprise award may be expressed to cover one or more specified organisations, in relation to:

all or specified employees covered by the award; or

the employer, or all or specified employers, covered by the award.

A modern enterprise award must not be expressed to cover outworker entities.

For the purposes of subsection (2), an enterprise must be specified:

if paragraph (2)(a) applies to the enterprise—by name; or

if paragraph (2)(b) applies to the enterprise—by name, or by the name of the franchise.

For the purposes of subsections (3) and (4):

an employer or employers may be specified by name or by inclusion in a specified class or specified classes; and

employees must be specified by inclusion in a specified class or specified classes; and

organisations must be specified by name.

A modern enterprise award must not be expressed to cover classes of employees:

who, because of the nature or seniority of their role, have traditionally not been covered by awards (whether made under laws of the Commonwealth or the States); or

who perform work that is not of a similar nature to work that has traditionally been regulated by such awards.

For example, in some industries, managerial employees have traditionally not been covered by awards.